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Contractor Cannot Claim Ignorance Of State Taxes As A Unilateral Mistake

Wednesday, July 04, 2007 12:26 pm

Contractor Cannot Claim Ignorance Of State Taxes As A Unilateral Mistake

The Armed Services Board of Contract Appeals (ASBCA) ruled that a contractor's failure to ascertain the extent of taxes required by the state of Mississippi was a judgmental error that the contractor must bear. The contractor was not entitled to reformation despite the fact that the contract amounts agreed upon did not include the tax in question.

In February 2002, the Southern Division (SOUTHDIV) of the Naval Facilities Engineering Command (NAVFAC) awarded two contracts to Ellis Environmental Group (EEG) for renovations of buildings at the Naval Air Station in Meridian, Mississippi. The awards were on a sole source basis at a combined fixed price of $6,165,195. The solicitations and the resulting contra [...]

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